Target of Wilkes-Barre credit union investigation dead

Jim Payne, the manager of a credit union serving Wilkes-Barre city employees, was found dead at his home Monday.

The manager of the credit union serving Wilkes-Barre city employees was found dead at his home Monday as federal agents targeted him in an ongoing corruption investigation.

State police said Jim Payne died from a gunshot wound, but that it did not appear to involve foul play.

Payne died four days after the FBI served a subpoena on the Wilkes-Barre City Employees Federal Credit Union office inside Wilkes-Barre City Hall.

Two law enforcement officials, who spoke on the condition of anonymity because of the ongoing corruption probe, confirmed Payne was a target of the investigation.

Sean Quinn, the director of the FBI's Scranton office, acknowledged the corruption investigation and said "there will be arrests forthcoming," but would not say if Payne was a target.

Nevertheless, he said he believed "corruption" led to Payne's death.

"I can tell you it is a very sad and regrettable incident, and I believe it is the byproduct of corruption," Quinn said in a telephone interview Tuesday. "I don't attribute it to the investigation but I attribute it to corruption."

Asked to elaborate, Quinn said: "In my opinion only, I believe it is related to criminal activities in that area. Beyond that, I don't know. Hopefully I'm wrong about that. I hope I am, but I don't think I am."

State Police, who cover the township in lieu of local police, did not find any apparent suspicious circumstances in the death, Krawetz said.

Coroner Bill Lisman did not return repeated telephone messages Monday and Tuesday. His office referred questions to state police.

The Wilkes-Barre City Employees Federal Credit Union, serves employees of Wilkes-Barre, Wilkes-Barre Township and Plains Township and their families.

The credit union is not a part of city government, but several current and former city employees serve on its board of directors.

Quinn said the FBI considered the credit union as a "witness" and a "victim" in an ongoing criminal investigation. Individual employees of the credit union were potential targets of the investigation, Quinn said.

Payne was one of three employees at the credit union, according to a 2013 report filed with the National Credit Union Administration, the federal credit union regulator.

FBI spokeswoman Carrie Adamowski said agents returned to the credit union Tuesday. She would not say what agents were seeking or if they took anything.

Wilkes-Barre Mayor Tom Leighton delivered the news of Payne's death to Payne's wife, Assistant City Clerk Catherine Payne, at City Hall on Monday.

She wept as Police Chief Gerard Dessoye escorted her from the building.

Leighton declined to speak about Payne's death, saying its a private matter for the family.

"It's too sensitive," Leighton said. "It's very somber around here."

Grief counseling was available for employees at City Hall on Tuesday, he said.

Leighton stressed that the credit union is independent from city government, and just rents space in city hall.

Whatever the FBI is investigating, it’s not related to city business, Leighton insisted.

"There is no city relationship," Leighton said. "There is no affiliation. It has absolutely zero to do with city government."

Leighton, however, does have a personal relationship with the credit union. His real estate firm, C.A. Leighton Co., is paid to perform appraisals for the credit union.

“I don’t do many. It’s very few,” Leighton said.

The mayor said his firm has done business with the credit union for 25 years and it's just like doing business with any other financial institution.

"There is no conflict," Leighton said.

Dominick P. Pannunzio, an attorney for the credit union, released a statement in response to Payne's death:

"The Board of Directors of Wilkes-Barre City Employees Federal Credit Union is deeply saddened by the death of its longtime manager James Payne. The Board members would like to extend their heartfelt sympathy and condolences to Jim's wife and family. Jim's colleagues in the Pennsylvania Credit Union movement will greatly miss Jim's dedication, fervor and commitment to the Credit Union philosophy.," he wrote. "I would like to inform all members of the Wilkes-Barre City Employees Federal Credit Union that Jim's commitment to the service will continue and the Credit Union will remain open for business as usual."

We welcome user discussion on our site, under the following guidelines:

To comment you must first create a profile and sign-in with a verified DISQUS account or social network ID. Sign up here.

Comments in violation of the rules will be denied, and repeat violators will be banned. Please help police the community by flagging offensive comments for our moderators to review. By posting a comment, you agree to our full terms and conditions. Click here to read terms and conditions.